After reading this handout, please discuss the following questions:
1. If one city spends more on police-protection services per capita than does another, one expects less crime in the first city than the second. True or False, or uncertain? Explain.
2. At a public-budget hearing, a citizen once argued, “Education expenditures have increased 5 percent in each of the past three years even though student enrollment has been declining. Where is the extra money going? It seems to me that if the number of students declines, expenditures should also decline.” Is the citizen right or wrong? Explain.
